From idea to business idea
How the market supports my business idea
Getting ready for the market
Financing - Profit analysis
Do I need other skills?
Tools & References
Value Proposition
A value proposition is a useful technique which basically supports you in creating value for your customers. It describes the benefits customers can expect from your products or services.
Your value proposition has to focus exactly on what your customers really want and value. Do they want to find solutions to a problem; to have a better quality life; build a better business; etc?
Whatever you are selling and to whomever you're selling it, a value proposition is crucial. Whoever your customers are the idea is to help them see the unique value that your offer provides them, in such a way that they know the product or service is right for them.
The key to creating a good value proposition is to know your product or service well, know how it compares with those of your competitors and, more importantly, to know your audience's needs.
Your value proposition fully answers your customer's question: "Why should I buy this specific product or service?"
Steps to create your unique value proposition
Know your customer
You need to figure out who your customers are. Who will buy your products or services? A lot of business owners want everyone to be their customer which is a huge mistake. If you try to appeal to everyone, your business and product will get lost.
Try putting yourself in the customer's shoes. You can do this by answering the following questions:
· Who is my customer? What does my customer do?
· What problems does he need to solve?
· What value is important for my customer?
Know your service, product
From your customer perspective try answering:
· How would your product, service solve a particular problem or offer improvement?
Know your competitors
Still thinking from the perspective of your customer, ask yourself:
· How does your product or idea create more value than competing ones?
Formulate the customer-oriented proposition
Finally you need to pull all of the information you have got together and answer in a couple of sentence: "Why should I buy this specific product/service?"
Try answering from the customer viewpoint by completing the following, (include specific information that matter). Formulate your value proposition by starting each sentence with the following:
· "The things I value most about this product/service are..."
· "It is better than competing products or ideas because..."
· "I want to buy this product or service because it will..."
After all these steps formulate your value proposition by turning your customer's answer from above into statements and using your list of unique attributes.
Your value proposition has to focus exactly on what your customers really want and value. Do they want to find solutions to a problem; to have a better quality life; build a better business; etc?
Whatever you are selling and to whomever you're selling it, a value proposition is crucial. Whoever your customers are the idea is to help them see the unique value that your offer provides them, in such a way that they know the product or service is right for them.
The key to creating a good value proposition is to know your product or service well, know how it compares with those of your competitors and, more importantly, to know your audience's needs.
Your value proposition fully answers your customer's question: "Why should I buy this specific product or service?"
Steps to create your unique value proposition
Know your customer
You need to figure out who your customers are. Who will buy your products or services? A lot of business owners want everyone to be their customer which is a huge mistake. If you try to appeal to everyone, your business and product will get lost.
Try putting yourself in the customer's shoes. You can do this by answering the following questions:
· Who is my customer? What does my customer do?
· What problems does he need to solve?
· What value is important for my customer?
Know your service, product
From your customer perspective try answering:
· How would your product, service solve a particular problem or offer improvement?
Know your competitors
Still thinking from the perspective of your customer, ask yourself:
· How does your product or idea create more value than competing ones?
Formulate the customer-oriented proposition
Finally you need to pull all of the information you have got together and answer in a couple of sentence: "Why should I buy this specific product/service?"
Try answering from the customer viewpoint by completing the following, (include specific information that matter). Formulate your value proposition by starting each sentence with the following:
· "The things I value most about this product/service are..."
· "It is better than competing products or ideas because..."
· "I want to buy this product or service because it will..."
After all these steps formulate your value proposition by turning your customer's answer from above into statements and using your list of unique attributes.
